Where are tokens raising the bulk of their capital in 2020…
On the 14th of January The Panxora Token Founder Boot Camp ran its first Ask Me Anything Event for people interested in learning how token investors make decisions where to put their capital in 2020. . Token investors Zev Yu and Gavin Smith attended the event to answer questions from token founders and people considering the path of doing a token sale.
Zev joined group by link from Marcie D
Marcie D
Hi Zev. Thank you for joining us.
Zev is one of our token investors that is joining us to answer your questions.
Zev
Hey Marcie
Gavin Smith
Hi everyone
Amna Yousaf
Hi Gavin and Zev. Welcome to the group.
Marcie D
Gavin. Thank you for joining
This is the first AMA being hosted by Panxora.
Shukran Bonaparte
Hi Zev, welcome to the group
Marcie D
The most urgent question most of the token founders I speak to is… finding investors in the current environment.
Shukran Bonaparte
Hi Gavin, thank you for joining
Gavin Smith
In reply to: “ The most urgent question most of the token founders I speak to is… finding investors in the current environment. ”
Yes, well thought through projects are still getting funded but the lead time is usually longer and the proposition needs to be well thought through … no more 2 page whitepapers raising a few million ?
Vincent Muthee
Thanks for organizing this event… It’s really challenging for token founders to get off the ground nowadays
Marcie D
Ah. you are talking about 2016/17
Zev. How do you identify tokens you are considering for investment? Do you meet people at conferences? Read articles?
Same question to you Gavin. How does Panxora identify potential investments?
Zev
I’m Introduced by Shukran
Marcie D
Oh! wow. Yes. Shukran is out there meeting a lot of token founders
In Singapore.
Gavin Smith
In reply to: “Thanks for organizing this event… It’s really challenging for token founders to get off the ground nowadays”
Hi Vincent, I think it’s challenging for both founders and investors at the moment. When there was a large amount of interest in the space there was a good flow of projects coming through. You needed to be careful but there were really good ideas out there. Now the deal flow is much lighter.
EmmRates
In reply to: “Thanks for organizing this event… It’s really challenging for token founders to get off the ground nowadays”
Yes Vincent, that’s the core reason we got something like this going… Hopefully experienced founders would contribute immensely and help the baby businesses grow exponentially.
Gavin Smith
In reply to: “How do you identify tokens you are interested in investing in?”
For us we look at projects where the founders not only have a good idea but are approaching it in a considered way. There needs to be thought given to managing the cash flow and capital to ensure the company survives to hit the point where it generates real value.
Zev
But their demands are different
Gavin Smith
In reply to “But their demands are different”
Hi Zev, that’s interesting – how do they look at projects when considering investment?
Vincent Muthee
In reply to: “Hi Vincent, I think it’s challenging for both founders and investors..”
Yes, when scam projects joined the race for funding, it becomes harder for investors to distinguish.
Gavin Smith
In reply to: “Yes, when scam projects joined the race for funding, it becomes harder for investors to distinguish”
Yes, to a degree … the basics are still important, identify the founders – understand the proposition. I think the big difference now [in 2020] is that investors expect some safeguards around investment. In the same way that a VC will usually use staged investment rather than deliver the capital in one tranche, investors are starting to find ways of doing a similar approach in the token space.
Amna Yousaf
In reply to: “For us we look at projects where the founders…”
How do you find the tokens you invest in?
Vincent Muthee
In reply to: “Yes Vincent, that’s the core reason we got something like this going…”
I agree.
Gavin Smith
Any project we invest in we will require an independent custodian to hold the funds and release the funds in stages to the project. This safeguards both the investors and also stops the founders from getting carried away. Often it is good to have reserves to allow the project to pivot if things turn out differently than expected.
Shukran Bonaparte
Do you prefer ICO investment or IEOs? If you have a preference, why?
Gavin Smith
In reply to: “The technology and its business model will be able to generate fiat currency…”
Yes … that has become essential in any project worthy of investment. There needs to be a sound business proposition with a clear path to growth. The increase in the value of the token should be driven by that growth … not a speculative pump in its own right.
Zev
In reply to “Do you prefer ICO investment or IEOs? In you have a preference…”
Actually, a combination of equity and token or just equity.
As for China will be just equity.
Gavin Smith
In reply to “As for China will be just equity.”
Is that because of the Chinese restriction on crypto trading?
Vincent Muthee
In reply to “Actually, a Combination of equity and token or just equity”
Awesome, I think Equity and token combination is the real deal.
Zev
STO is under review in China, due to the release DCEP the Chinese government RMB digital currency token.
So token must be use as service credit not a medium of exchange of fiat currency value in China.
NHMcrypto joined group by link from Marcie D
Amna Yousaf
In reply to “STO is under review in China, due to the release DCEP the Chinese…”
Jurisdiction does play a major role when deciding the future of a token.
Shukran Bonaparte
In reply to “Actually, a combination of equity and token or just equity”
In that case is there any key metrics that you use to measure start-up valuation? If so, what is your take on their realistic expected valuation for the company?
EmmRates
In reply to this message
Hi @NHMcrypto. Welcome to the group.
Zev
In reply to “Awesome. I think Equity and token combination is the real deal.”
As for Singapore, I’m in contact with VCs under Tamask Holding are going in for equity investment as well.
Shukran Bonaparte
Welcome Nguyen to Panxora AMA session. Nguyen is the founder of GC token project
Marcie D
Cool! Welcome Nguyen
Amna Yousaf
@NHMcrypto welcome to the group
NHMcrypto
Hello everyone
Vincent Muthee
In reply to “As for Singapore, I’m in contact with VCs under Tamask Holding are going in for equity investment as well”
That’s great, I hope we can cooperate and bring them on-board.
Zev
In reply to “In that case is there any key metrics that you use to measure start-up valuation? If so, what is your take on their realistic expected valuation for the company?”
As for the detail I will message you and Marcie via Pm.
Shukran Bonaparte
In reply to “As for the detail I will message you and Marcie via Pm”
Alright noted Zev, will be highly appreciated
NHMcrypto
In reply to “welcome.”
thanks bro
Vincent Muthee
In reply to “What other means are you exploring when this scenario finally kicks in? Are you able to share this information?”
We’re considering seed funding via equity sale.
Amna Yousaf invited TAI TRUONG TAN (HUBERT)
Marcie D
Welcome Hubert
Ken Finneran
Sounds good, we will be looking to do token swap on our STO with fellow STO founders
Gavin Smith
In reply to: “Sounds good, we will be looking to do token swap on our STO with fellow STO founders”
Hi Ken, so how does that work in practice?
EmmRates
In reply to “We’re considering seed funding via equity sale.”
Alright Vincent. If you have questions anytime, we will be more than happy to engage with you here.
Marcie D
Out of interest Vincent. What do you plan to put aside for marketing? Just rough numbers?
Shukran Bonaparte
What’s the best direction on which countries token project should focus their marketing, to bring money into their token?
Vincent Muthee
In reply to “Alright Vincent. If you have questions anytime, we will be more than happy to engage with you here.”
Thanks EmmRates. Will surely be in contact.
Gavin Smith
In reply to “What’s the best direction on which countries token project should focus their marketing, to bring money into their token?”
From what I’ve observed there’s more interest in SE Asia than Europe at the moment from the investor side. That’s staring to change with interest staring to be shown from Family Offices (mostly for an equity stake rather than just token)
Marcie D
Shukran are you asking about face to face meetings. Gavin Smith, like events and road shows? Or are you asking about translating materials like whitepapers?
Shukran Bonaparte
In reply to “Shukran are you asking about face to face meetings. Gavin Smith, like events and road shows? Or are you asking about translating materials like whitepapers?”
That’s clearer now, thank you Gavin
Vincent Muthee
In reply to “Out of interest Vincent. What do you plan to put aside for marketing?”
Maybe approximately $10,000 marketing for the seed funding round.
Shukran Bonaparte
In reply to “Shukran are you asking about face to face meetings. Gavin Smith, like events and road shows? Or are you asking about translating materials like whitepapers?”
It applies to both depending on which jurisdiction especially if they do not speak in the common tongue but have a competitive advantage for early stage token projects.
Amna Yousaf
In reply to “From what I’ve observed there’s more interest in SE Asia than Europe at the moment from the investor side. That’s staring to change with interest staring to be shown from Family Offices (mostly for an equity stake rather than just token)”
I have a marketing related question as well, Gavin. Do you think listing on websites like ICO Bench is worth an investment for a token to be noticeable? Do you use such rating sites to contact the token founders? Thanks
Marcie D
Well I would agree with Gavin. Though I work mainly from our London office the people I speak to… about 80% are in Asia.
Singapore, Seoul, Hong Kong, even Beijing.
Interesting question Amna. I’ve wondered that myself.
Gavin Smith
In reply to “I have a marketing related question as well, Gavin. Do you think listing on websites like ICO Bench is worth an investment for a token to be noticeable? Do you use such rating sites to contact the token founders? Thanks”
We draw tokens from a broad range of sources, including the rating agencies … although we always do our own research rather than rely on any 3rd party rating
Zev
In reply to “Well I would agree with Gavin. Though I work mainly from our London office the people I speak to… about 80% are in Asia.”
That’s right
Marcie D
Both institutional investors and independents
Zev
USA will invest at later stage with Caution
Marcie D
Though there is (as Gavin says) European family offices. Also Dubai that are starting to look for high quality crypto projects.
I think you have to be VERY careful about taking U.S. money
Which is a shame because it is potentially a large market
EmmRates
In reply to “Maybe approximately $10,000 marketing for the seed funding round”
Do you have any opinion about bounty campaigns?
Since you are looking to raise funds for your new project, do you think they are still necessary and a cheaper way to get the word out about your project, especially to the right audience?
Marcie D
Bitcointalk.org
Gavin Smith
In reply to “Do you have any opinion about bounty campaigns?”
Personally I think, if managed correctly, they serve a good purpose
Marcie D
There are a lot of different threads to a bounty campaign.
Gavin Smith
In my mind a well organised bounty campaign should be spreading the word about the project… not specifically the investment in the token
Marcie D
And not all of them yield the same level of results
Good point Gavin.
It’s about drawing people in so they can decide for themselves.
Use the bounty campaign to draw them into a group like telegram where they can ask questions and meet the founders.
Gavin Smith
often founders (understandably) focus entirely on the fund raising effort and don’t give enough attention to the viral benefit that can be gained for promoting their project
often high levels of interest in the underlying project idea will draw in investors rather than the other way around.
Marcie D
I think in this market where there is a lot of concern about bad projects a softer approach will raise confidence.
SO as you say, pull people in to learn about your project rather than pitching discounts or highlighting the ends of offer periods
EmmRates
In reply to “Personally I think, if managed correctly, they serve a good purpose.”
Absolutely, Gavin…
Are there any “actions” you would term as a must when you launch a bounty campaign in order to make it a successful one?
Amna Yousaf
In reply to “often founders (understandably) focus entirely on the fund raising effort and don’t give enough attention to the viral benefit that can be gained for promoting their project”
That’s a good point. Founders have to be careful with time management and they also have to analyse how different elements would serve in the long run.
Gavin Smith
Depends on the type of project (sorry for stating the obvious) but with anything like this you want to draw in interaction with your site…. an example might be a games offering, if the designer had a mini-game which people could play online then you would tie rewards into people using the interactive demo/mini-game. Obviously not all projects fit naturally into this approach but often by thinking laterally you can gamify an aspect of your proposition and draw people in … at worst in highlights the ideas about the proposition, at best it generates longer term interest … in either case your brand will start to get identified… now I’m straying onto areas that other people in our organisation are much better at ?
X Z joined group by link from Marcie D
Conrad Von Huls
are you Xiaochen Zhang?
Welcome
EmmRates
In reply to “obviously not all projects fit naturally into this approach but often by thinking laterally you can gamify an aspect of your proposition and draw people in … at worst in highlights the ideas about the proposition, at best it generates longer term interest … in either case your brand will start to get identified … now I’m straying onto areas that other people in our organisation are much better at ?”
I love the way you break down these points, it’s remarkable.
Marcie D
Guys, obviously if there are outstanding questions and you have time, please answer them. But we are at the end of the hour now
XZ
Yes @dreadnoughty
Marcie D
I’d like to thank Zev and Gavin for joining us. The answers are REALLY thoughtful.
Amna Yousaf
It was really helpful. Thank you everybody!
Marcie D
This is the first AMA we hosted. You founders please let us know what other issues you would like covered and we’ll try to pull in good resources. I also want to thank all the token founders who have joined us today
You guys sharing information will help this group be a success and help the token industry get stronger.
We want to share GOOD information.
To find out more about The Token Boot Camp or Panxora’s Token Services contact [email protected].
About Panxora
Panxora provides services that professionalise and elevate the crypto ecosystem. Its offerings are built on the back of the team’s experience in technology, blockchain and traditional finance. Its treasury risk management technology and investment proposition offer much-needed support for token projects looking for professional methods to raise funds and manage capital. It also has a hedge fund which trades the crypto markets using proprietary AI-software open to high net worth, professional and institutional investors. Its cryptocurrency exchange provides liquidity for token projects, and its accounting and payments software for crypto simplifies and automates the tracking and clearing of crypto transactions.
From its offices around the world, Panxora is ensuring that crypto asset holders and token founders have the tools they need to build dynamic, professional and profitable businesses.
Media contact for Panxora:
Amna Yousaf,
VP Investment,
[email protected]
+1 345 769 1857